Starbucks’ $100 million acquisition of La Boulange Bakery

Starbucks in the United States has made a $100-million transaction with Next World Group, making it the majority investor in the bakery business. The acquisition of Next World Group’s La Boulange Bakery is expected to be completed in the second quarter of 2012.

Along with the acquisition, Starbucks has hired French baker Pascal Rigo, who founded La Boulange Bakery. Starbucks plans to introduce Rigo’s recipes into its U.S. stores under the La Boulange brand.

Since 2010, Starbucks has re-capitalised and made a strong comeback from a number of mistakes during rapid expansion throughout the prior decade. Its early push into Australia ran into difficulties as Australian Food News reported at the time.

Influenced by customers’ feedback, Starbucks has sought to remove artificial ingredients where possible from its menu and has also introduced smaller portion sizes.

In order to bring La Boulange products to its company-operated retail stores in the United States, Starbucks will be looking to make investments to broaden distribution capacity in select markets, while working closely with outside suppliers to create various La Boulange products for Starbucks stores nationwide.

The company will continue to serve Bay Bread LLC’s wholesale bakery customers and will evaluate expanding distribution over time.